Bank of America Merrill Lynch 2019 Global Energy Todd Stevens President & CEO November 13, 2019
Positioned to Execute Our Strategy to Deliver Long-Term Value The VCI Difference Delivers Real Value Value Value-directed investments Focus Disciplined capital allocation Enhanced returns over full-cycle time frame Drives…
CRCs Value-Driven Strategic Approach Capture Value Ensure Effective Drive Operational Strengthen of Portfolio Capital Allocation Excellence Balance Sheet Pursue value-driven Utilize VCI-based Streamline processes Reinvest to grow…
Californias Compelling Needs Worlds 5th largest economy runs first and foremost on energy Consume more gasoline than countries with populations 4x larger 37% of U.S. Port container traffic with the busiest ports in the country…
Pressure Tested Through the Commodity Price Cycle and Focused on Long-Term Value SEPARATION VALUE TRANSITION TO OFFENSE QUICK 30 ANNOUNCEMENT PRESERVATION RESPONSE TO 110 Spin PRICE CHANGE 25 Brent Crude Oil Price (/BBL) Brent…
Key Highlights 3rd Quarter 2019 91 Total Wells Drilled1 128 Mboe/d 188 Million2 278 Million Includes 35 internally 62% Oil 117 million 1.1 billion LTM funded wells internally funded Adj.EBITDAX3 PRODUCTION ACTIVITY…
World-Class Hydrocarbon Province with Significant Potential Remaining Recoverable Resources (BBOE1) California a Top Oil Province California Five of the largest conventional, onshore fields in the lower 48 Permian (Wolfcamp +…
Large Resource Base with Production Diversity SACRAMENTO BASIN Gas Optionality Largest Producer in California1 1 Producer 5,000 BOE/d2 Operate with 86% of basin production 85% of basin mineral acreage 12,000 wells Across…
Enhanced Inventory Growth and Expanded 3P Position 2018 Highlights Growth in Unproved Reserves1 Proved reserves today only 7% lower despite 29% 2,500 decrease in price from the YE 2014 2,250 Life-of-field studies increased unproved…
Unlocking Value with a Deep Inventory of Actionable Projects at 65 Brent 50 Steamflood Waterflood Fully burdened, growth-focused Primary 40 portfolio Shale Full Cycle Cost1 (/Boe) Gas 30 Achieve a VCI of 1.3 or greater at…
JVs Provide Additional Capital Flexibility Net Production By Stream (MBOEPD) 1 Oil NGL Gas Total Capital CRC Capital (Internally Funded) 160 320 140 280 Production (MBOEPD) 120 240 Capital (MM) 100 200 80 160 60…
Accelerating Value and Derisking Inventory through Development JVs Up to 300MM Up to 250MM Current commitment of 140MM, Up to 500MM Total of 200MM funded to date with 125MM funded to date Current commitment of 320MM, with 63MM…
Disciplined Capital Plan Leverages Project Portfolio 2019E Total Capital 2019E Internally Funded 2019 Internally Funded Development Capital By Basin Capital Program 385 to 400 Million Exploration Other Sacramento and Ventura, 2% 3%…
Dynamic Capital Allocation Through Commodity Cycle High-Price Scenario Invest to accelerate production growth and explore/pilot new resources Add facilities (steam and water handling) to support pace of growth High cash generation…
Unparalleled California Expertise and Insight Extensive Field Core Assets Provide Largest 3-D Seismic Operations Experience Operational Leverage Position in California of observed field behavior and Decades demonstrated shallow base…
Elk Hills Flagship Asset in San Joaquin Basin Large field with 100% NRI 10 billion original BOE in place within multiple reservoirs Produces 60,000 BOE/d with annual 10% base decline Infrastructure provides low-cost advantage…
Leveraging Infrastructure for Nearby Low-Cost Field Development Southern San Joaquin Valley Consolidation Coring up with Elk Hills Elk Hills serves as the hub Power, pipelines, compression Connecting fields and building out Lower…
Developing Entire Southern San Joaquin Basin into Core Area Redevelopment, expansion and additional recovery in existing CRC operated fields Large Inventory of Development Projects Large fields with low recovery factors 500 identified…
Conventional Exploration Program Generates Substantial Value 10 well exploration program in 2017 and 2018 Delineation and expansion of proven play trends Multiple Small Joint plus new impact play concepts Ventures Reduced risk via…
Strengthening the Balance Sheet Remains a Priority Target 2x 3x Leverage Ratio Continue to Employ Leverage ALL of the ABOVE 9.0x 8.0x Approach Total Debt / LTM Adj. EBITDAX1 7.0x 6.0x 5.0x Capital Disciplined Asset Markets…
Current Enterprise Value Deeply Discounted 0 1 25 20 15 Value (B) Infrastructure and Other2 Surface and Minerals3 10 Unproved4 Current EV PUD1 of 6.1 Bn5 5 PD1 0 55 Brent 65 Brent 75 Brent 1-5 See…
Disciplined Execution on Highest Value Projects to Deliver Substantial Value VALUE DRIVEN Balance capital investment with Financial Strengthening Efforts Portfolio of world-class assets investable for best long-term value creation…
APPENDIX
Opportunistically Built Oil Hedge Portfolio Strategy Purchased 4Q19 1Q20 2Q20 3Q20 4Q20 Protect cash flow, operating Sold Calls Calls margins and capital Purchased Barrels per Day 35,000 30,000 15,000 10,000 5,000 investment…
CRCs BOE Recovery per Foot Competes With Major Shale Plays Normalizing estimated ultimate recovery (EUR) vs. measured depth shows CRC advantage: Better recovery factors driven by low decline rate waterfloods and steamfloods Diverse…
Demonstrated Experience Controlling Production Costs Through Price Cycle Annual Production Costs & Capital Investment1 1,200 Capital investment scales with commodity price changes 1,100 2014 Production Costs (MM) Flexible…
CRCs Natural Gas Liquids Marketing CRC is the largest NGLs producer in California CRC Average of Proxy Peers Premium % Over Proxy Peers' Avg Approximately 16,000 bpd 50 180% Breakdown of CRCs NGLs production: NGL Realized Price…
Advancing Californias Sustainability Strategy CRCs 2030 Goals demonstrate our long-term commitment to sustainable in-state energy production that meets the needs of Californias growing population and Californias leading safety, labor,…
Typical Industry JV Structure 7,000.00 Hurdle Rate Based on recent industry JV Reached Production deals, a typical deal structure is o Partner pays 80-100% Capital 6,000.00 o Receives 80-100% Working Interest 5,000.00 o…
Lost Hills Field 50% Operated Working Interest Sale + Joint Venture Completed a sale of operatorship and a 50% working interest in certain zones in the Lost Hills field Proposed Patterns Proposed Tulare Producer Over 200 MM in total…
End Notes From Slide 24 1 CRC estimate of reserves value as of December 31, 2018. Includes field-level operating expenses, G&A and taxes other than on income. Assumes 3.00/MMBTU NYMEX in all cases. 2 Reflectsthe value of facilities…
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